>> welcome to my neil cavuto. so much for that pain in the asteroid. it might have scared us, but that never there are companies willing to plunk down big bucks on at least two big punches, one of the earth would not be destroyed and two, that being the case, putting some cash to work work right now. a wad of cash. about $50 billion of cash since january. that includes the $23 billion that dell is planning to take itself private. the $28 billion that warren buffett is forking over for h.j. heinz, and the 11 billion-dollar merger between amr and u.s. airways. and i'm not including anheuser-busch more than big numbers and big deals.
a big question. why is all this happening right now? why in an environment where taxes are going up a lot, why are we back to the deals with the likes of which we haven't seen since those lazy and hazy, much lower tax rate of 2005? well, it could be that companies simply have no else where else to put their cash or maybe it is all part of a big bunker mentality. too risky to start something new. so they are just buying out arrival or two in their own business. the deals are back. usually that is good for investors. but before the president takes a bow and since christmas, maybe you should take note that these guys are spending all this money, not as an endorsement, maybe as a defense against it. the real story behind all of this, we have matt schuett. what is going on? >> well, there's a lot of cash
out there. not returning anything. borrowing costs are very low. stocks are pretty cheap. we have an environment where growth is slow. it is tough to grow. so you think about doing it in organically rather than organically. people are willing to step out with a little bit more confidence to do some of these deals. this is the beginning and we hope to do more. neil: if you are barack obama, you will look at the sensei of wall street has a problem with me, it has a funny way of showing it. what do you make of that? >> yes, i am sure. i am plenty convinced that president obama and his team will try to take full credit for this.
inflation was not taken into account during neocommunist that i can't help but look at the situation with all these announced mergers and think what it could be that president obama and his team realized that they can't get to their spending nirvana without getting this economy growing. and the economy is hobbling along, even if slow runners can across the finish line. neil: we may be back to levels of the market where we were five years ago. but it has been a steady climb back to worst -- excuse me, from e worse. net net, is a good barack obama? >> yes, i am for it. we are all investors. we all want to see this thing improve. i agree with bob that economics is about choices.
neil: i do buy your argument about the slowly inching back economy here. not in the gangbuster fashion, but enough to compel money that has been nervous. and sitting on the sidelines come back in. but the way it is being committed is not to expand plans and operations as much as it is to retrench buying out a competitor. you're really not expanding your business but you're really just retention the existing business. you are not heralding the success of what is going on. you could argue it is part of the bunker mentality. explain the mechanics of what is happening. >> i think you're absolutely right. the way i put it is think about how much better it could be if we had become policies.
the rate of return on capital is a big gap. the reason there hasn't been something prior to this, the reason is as much as we have seen this week, is the uncertainty and the absence of clarity around the policy. the mechanics are absolutely right. it is a bit of a retrenchment. i don't know what else to do it on one of the big uncertainties in the election is not who is going to win, but whether all the bush tax rates were going to be renewed. now we know. by and large we kind of know where we stand. his wall street good or bad? >> we know more today than we did prior to the election and the fiscal cliff. but we have so many uncertainties. i am not saying that we are
going to get more deals. i think that we will. my point is that we have more clarity and i think that we will get a lot more deals. >> i totally agree. i think one of the issues that is at stake here is certainly republican investors were waiting for a savior to come in. was mitt romney going to win. would john boehner stopped. basically, but that comes a lot of clout. there is a reality set in. so i think that is one reason why people at. neil: i will defer you to you, you're the expert. but i do read a cofounder, so i think i know what i'm talking about. bob, i'm going to raise the issue with you. i think wall street is beyond ring about washington whether it will once again, in two weeks, blow another sequestration deadline or even see it come to
neil: cohead? >> is the person that brought up washington, really the upshot for washington republicans in all of this is the fact that i think there are certain realities setting and in voters minds. i think the president has had a little b of boosting of his approval ratings. if he brings up this ridiculous idea, taxes and climate change, you will see a whole other ripple go through the economy is what the exact tax rate will be. especially to consider energy and its impact on our economy. it is growing and growing. some of its manufacturing renaissance, $100 billion of new products, it was because we have this wonderful energy. president obama is doing even his best to scare those folks. neil: thank you very much. in the meantime, one of the president's fiercest critics,
whether washington is giving business a whole lot more grief than what they need right now. and this time, a meteorite injuring 1000 people in russia. with nasa cutting back, how do with nasa cutting back, how do prevent another tragedy like at a dry cleaner, with nasa cutting back, how do prevent another tragedy like we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.
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neil: tax hikes cking in. whole foods trying to pump up business by bringing prices down. they say that they are trying to reach a broader market. good to have our next test. >> afternoon, neil. neil: as a whole foods market fan, one thing i would argue is that yes we do pay a little bit more for your stuff.
do you lose a little bit of your cachet in the products you sell, and in a way, giving in to these economic forces. your inner self? >> well, that's a fair question. we have been quality friends for year what we're talking about is keeping in perspective the same strategy that we have talked about on the last sx or eight quarters, the headroom in the bandwidth to continue to invest in prices we need to does the competition dictate. it's he refining and adjusting as a marketplace dictate. neil: i'm wondering in the
process about a thing about our economy right now. whether or not -- it's pretty sad on what folks are willing to pay or not pay. what part of what you're doing you are doing is in acknowledging the fact that it can be dicey. >> we have over 6 million customers coming through our stores everyday. it is a reflection of the environment. neil: what about this environment. we were talking with ur guests about the deals coming out on wall street, or because of what is happening in washington. how much of what you do at whole foods is driven by the noise in washington. what do you know that a lot of folks have taxes are going up.
how much of that drives what you do? >> well, it's hard to read all that. it is how you correlated exactly. it is mostly a customer and consumer confidence. the growth is terrific and on track, we araccelerating our square footage growth, eight or 9% to 2014 and 2015 and we are proving our return to shareholders. neil: so as bob pointed out earlier, slo recovery? >> it is improving? >> yes, that is my view. i do think you will see slow
growth in 2013, but there is promise and hopefully resolution of questions out of washington that you are referring to. neil: do you think the will be? >> yes. neil: is very good to see you, thank you so much for your insights. well, consider smaller government, we are getting ready for much higher taxes. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence.
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they should pay at least a 30% effective tax rate. neil: so you heard it right there. pushing higher taxes. now this was that tax should fix the problem or maybe compound the problem. jonathan hoenig, we are so glad to see him and lizzie wickett mcdonald. >> over trillions of dollars of spending coming down the road over the next decade, this budget takes it in that regard. by the way come in, the rich can organize their own taxes. those that do the scorecard for congress. they routinely miss it year after year. we are $16 trillion in debt. i will tell you something that if you want government-funded green shoots, or you want to
trillion companies overseas back home -- these guys miss it constantly in congress. always messing up from that perspective. >> i feel awkward tensions. >> india. i think you have to be very suspicious about government force. those demanding the product of your labor. that is always the democrats go to when it comes to creating wealth in the country. more taxes, more redistribution, more control. >> we need a rational approach. yes, we need to cut spending. but we are going to have to raise taxes and taxes probably a lot. i'm not saying that the buffett rule is the solution.
do we need to look broadly at the whole income tax question. rich peoe move their income overseas and we need to look at the whole tax question. [talking over each other] [talking over each other] neil: i disagree with the premise that we have to raise taxes. my concern is there is a disproportion of attention to raising revenue than generators to cutting spending all the time. what are you going to do after this report came o, social security, they decide we are going to do with the income tax and i will solve it right there. in other words, immediate knee-jerk response will raise taxes. >> welcome i think the question is how much government do you want and how will you pay for it. if you want to get rid of the federal government, just close it down and lay that down.
>> that would be a major benefit and huge boon for the economy. >> before you redistribute all this and, through taxes, it has to be created. that is what free markets do. neil: mark raises a good point. if you want the amount of government we have now and you're not willing to going to cut it, you will have to pay more in taxes. so the debate is if you want this kind of government, you are unwilling to cut it, maybe you endorse making it bigger. and the only other solution is to raise the. >> that is what the problem has been that the white house and democrats in congress. they will not tell the american people the straight story. that is -- hang on. [talking over each other]
[talking over each other] >> mark, let me finish. >> let me finish. >> if you want entitlements in social security and medicare come you have to raise middle-class taxes. the gop has been saying this and they are getting really pounded at the polls. democrats will tell you that straight story. will not come even warren buffett, warren buffett himself lower taxes. that is the funny part of this whole stry. rich people are reorganizing taxes that they don't think they are going to get. [talking over each other] [talking over each other] neil: i think we have a do-nothing thing. republicans are reluctant to touch defense.
>> the only solution is to cut spending. our goal should not be what should the federal government be, it should be wealth creation from americans. the propensity to want to cut spending, whether it's on the democratic side or the republican side, especially when it comes to their programs as well, it is in there. so i'm looking at what you're saying. i am very worried -- i'm worried that we are going to get back to paying just a majority of what
we make. >> we are very spoiled in this country. we want everything and we don't want to pay for it. [talking over each other] [talking over each other] [talking over each other] neil: only half are paying their income taxes. we are paying for it. if you are right, people care about their lives -- they should want freedom. >> they should want to cut the entitlements. [talking over each other] [talking over each other] >> this is absurd thinking with the democrats, -- [talking over each other] [talking over each other] >> democrats will take every document you know i'm talking about, mark.
[talking over each other] [talking over each other] neil: all i know when i got out of school now that many years ago, that figure was in the 20 something percent. all i know is that when i hear these pictures, it is zeroing in on those paying the taxes already and the disproportionate share of government. it would seem to me -- it would seem that the only solution washington can come up wh is zeroing in on the taxes. >> icome from a family of longtime democrat. i've been a registered democrat. [talking over each other] [talking over each other]
>> right now the white house is demanding more spending and nothing to do with taxes. >> i think that should be the take away. they destroy wealth of no greater. both parties should be lowering taxes. >> i would like a 4-h club blue ribbon. okay, coming up next, burgers will be off the menu. discussing why this will make you laugh so you won't cry [ male announcer ] here's a word yoshould keep in mind. unbiased. some brokerage firms are. t way too many aren't. why? because selling their funds makes them more money. which makes you wonder -- isn't that a conflict? search "proprietary mutual funds." yikes! then go to e-trade.
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we should spend our time and our intelligence on how to avoid getting involved in other people's works. neil: republicans say you are going to throw grandma off a cliff. >> is always calm down. they are always in a state of panic. my father always went out and voted for it a president and wrote in his ame. [laughter] i remember that. i remember he said when i was about 12 years old, i think i got it this time. i think that people have to realize.
neil: whether it's defense or medicare or medicaid. pick a program. rational people, even the ones espousing this, they say no, no, this is not the case to i think we have to approach everything. we really have to check into it as well. the whole gun issue going on now, one thing that people are avoiding is that we should check the constitution and our government and what they really meant to say. i believe that there is a second amendment typo.
neil:ou look at this now,you stepack and say -- you realize how stupid you sound? and you realize how you are not far apart on some of these things. let's just solve this. >> nothing is getting solved. our country and citizens, they are too dumb to understand how dumb these people are being. we have this cerebral mind in america and it has shrunken to shrunk to the size of a peanut. america is low on the bar getting things done. it's on the pavement. if you get any lower. look into it. they will pick the thing that is
most dear to us. they don't say that we are never going to have spinach and broccoli. >> they know that we are stupid and we play off that stupidity. >> well, if you don't think the american public is saying who nate, no one is underestimating the intelligence. >> just as someone who wches the scene and hundreds of billions of dollars of money that we don't have on an issue that has yet to pan out, and then argue in the same breath as many have -- is a we don't have a spending problem. isn't that a tragic comedy right there? >> it's ludicrous.
they keep going and going and going. until it hits a wall somewhere. neil: why are so many in hollywood talking to both sides, being suspicious. why are they so okay with this. they are there with the fact that getting stuff out is okay. we endorse this. we like going back to the i will say something we can do right away. we don't give it to any countries that have consistently voted against a 0% of the time
the united nations spirit of civilian idea. >> everything to me as a microcosm. if you are a guy, you don't want someone money. when we keep giving money to these ople who are always knocking us in voting against us. but then just go wherever. [laughter] >> i wrote in mike huckabee in last the last election. i will tell you why. even though i do not attend with my writing, i thought, well, if anything happens, and we will have a
jewish president. [laughter] neil: that is a lot of fun. [inaudible] >> let me tell you something. today it is on me. and i said, okay,. neil: thank you for giving us a realistic view. as we come back, almost win by a rock from space in the case of the meteor. republicans say it is the white house facing us -- or is it the
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neil: republicans are blasting a global warming bill. in regards to tax carbon emissions, president obama is promising to take matters into his own hands and take executive action. we have peter hudson. of the hudson corporation. when you think about using this is what the demonstration will do? take matters into their own hands? thank you very much for the opportunity.
>> in regards to u.s. manufacturers and producers, longer term it will be the continuation of destruction. i think it's very shortsighted view on either you're for or against it. neil: there were a lot of routes and greasy palms along the way. >> this bill in particular, you are talking about a trillion dollars. $1rillion. that is almost $2 billion per week. transfer of wealth that is coming out for the american consumer, i'm not sure anybody really knows where this money is going and what it is intended to
do. again, if something like this is passed, it really needs to be on a global basis. the indians, chinese, europeans. >> if the chinese and the chinese and indians beat get a pass on the left to guys like you, we are the ones tt the disadvantage. >> we are the ones of the disadvantage. we have options. we saw natural gas corporation go up a lot more. steel and aluminum, or where they can compete around the world's. neil: do you think barack obama is chasing guys like you out? >> at the end of the day, i
really have a difficult time believing that something like this is even possible. neil: i don't know. what is going on? we can even see this stuff coming. coming. coming up this is $100,000. coming. coming up we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally.
1100 people injured, the same day that russia was focused on the asteroid flying close to the earth. a government program that tracks these things might have caught the asteroid, apparently missing the meteor. melissa francis says that that is not the stuff we are spending our money on. >> i don't know. i think if these things are hurtling towards us, this is a misuse of money. neil: consistently these types of agencies that do this sort of thing -- you know. >> you put up numbers on the screen from the project. we are spending $20 million to keep rocks away from our heads. it is not a big number at all. i think that we should be spending more money. if you want to use my tax dollars for something, giant
rocks should be kept from hurtling at our heads. okay, given it is the size of a football field or half a football field, does it make a difference when that same thing. we are watching now. we miss this other one the size of a car that comes flying and explodes in the air and causes its sonic blast, windows break, people are hurt. i want the government doing something, maybe this is it. neil: a lot of people look at radar and slice the heavens like that. there are only so many people that can do it. >> there about a thousand of these things flying around.
neil: if he gets through does a lot of damage. >> we are not training engineers and scientists and mathematicians in this country, so i can do only get worse. maybe we need really big moments or just going to go the way of the dinosaurs. neil: we are doing nothing to address the stuff. i look at this and the damage it did. it could've been a lot worse. i'm thinking that should be a top priority. >> maybe if it's not number one, it should be a higher priority. in 19 away, therewas one that leveled siberia. i think if you are going to use my tax dollars for something, save me from rocks lineup ahead.
that is all i'm saying. it makes sense. neil: alyssa, thank you very much. melissa francis. money with melissa francis. a best-selling author as well. a best-selling author as well. in the meantime, we will discuss dentures are very different to real teeth. they're about 10 times softer and may have surface pores where bacteria can multiply. polident kills 99.99% of odor causing bacteria and helps dissolve stains. that's why i recommend polident. [ male announcer ] cleaner, fresher, brighter every day. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.?
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to continue to head down all the gold stocks. there tends to be bullish signs, verign's. >> i think it's going down. it has been since 2002. $1900 per ounce, we need inflation. erybody is devaluing the currency. dumping more money into the market. we need inflation for gold, or peaked at $99 and alex everybody and devalue is there concern said -- currency by dumping more and more money into the market we need the inflation for gold or i hate to say this the unexpected event, of in north korea getting nuclear missiles. shock people into buying hard assets. neil: neither of the thing is a stretch. to your point, they say that we are not in a camp that says it's going to be god. it could be very good for gold. >> this is true.
the thing is -- the story is economies are healing. world are healing did not need that safe haven right now. but with central banks around the world they rush asonathan pointed out, gold is acting like a currency. it is more volatile. >> the thing is is that they oftentimes tend to anticipate and don't reflect that. even thinking about bank stcks between 2006 in 2007. extremely weak before we started talking about a credit crisis or an economic collapse. i think gold stocks and the medals themselves, people are worried about it. they should look at the bond
market. neil: would that be a good environment for gold? >> not necessarily. money coming out of higher assets. environment? >> not necessarily. money comes out of hard assets that for years now have yielded almost nothing. >> after the of the year strike it will not go up. >> base said that in russia's 24 hours ago. [laughter] >> with realities to runups the unsustainable deficits that they really cannot address. that is a macro argument. >> the name of the game by economic growth now to devalue the currency and make money. money is cheap right